Oligopoly and monopolistic competition are the natural market structures for capital-intense industries. Since investors and bankers demand some guarantee that price competition will not occur, the paper-oriented world of Wall Street anathematizes price competition among producers (1986: 167).

In a capitalist economy money is tied up with the process of creating and controlling capital assets... the creation of money is part of the mechanism by which a surplus is in a capitalist economy money is tied up with the process forced and allocated to the production of particular investment goods. (1986: 223-224)

We cannot, however, agree that "money is tied up with the process of creating and controlling capital assets" in any "capitalist economy". In the capitalist economy of the XIX century money was outside and exogenous and determined not by the actions of corporations and financial institutions, but by the gold stock. Likewise, the money supply in the Germany in the 1920s was also outside and determined exclusiv- elly by the actions of the government. In both cases the money creation process was not tied up with the fixed and financial investment at all. We think that the statement of Minsky is true only for the inside money economy. This type of money indeed appears and spreads with the capital-intensification under imperfect competition. The inside money economy can function succesfully only when the business firms are capable of controlling their prices.

We do not believe that atomistic competition and the long period gestation investment are inconsistent at all. As Boyd and Blatt (1988) have demonstrated, in the economy with exogenous outside (metallic) money the investment activity is financed through the very unstable stock market. According to that model, the firms sell shares in order to finance their investment, and then issue new shares in order to pay dividends on old shares (it is a something like Ponzi finance!). The decrease in the willingness of financial investors to buy shares generates rapid and heavy crisis. In this model the financial investors sector loses all money invested in the shares in the phase of slump. In other words, "financial investments are irreversible" (Boyd and Blatt, 1988: 74). We suppose that this irreversibility cannot be longrun feature of the market monetary economy. And we believe that the case, described by Boyd-Blatt model, was realistic, but not very typical for the atomistic monetary economy. The long "latency times" investments can be executed systematically and without enormous losses for some classes of the society only in the oligopolistic inside money economy.

Keynes's Theory of "Artificial Borrowers"

J.M.Keynes has described in the end of the second volumeof the Treatise on Money (1930) his theory of "artificial borrowers". According to the theory, in the phase of recession "genuine borrowers", who rely on the expected yield of new investment, are crowded out by "artificial" ones, who rely on the need to redeem old debts ("distress" borrowers), or on the aspire to gain from the (actual and expected) differences between short-term and long-term interest rates ("banking" borrowers) or on the desire to make money on the stock exchange ("speculative" borrowers). Keynes has believed that such "artificial borrowing", especially "speculative borrowing", can exacerbate economic instability.

Unfortunately, this theory has been overlooked or forgotten by many (may be even all) the Post Keynesians. By the way, by means of developing this theory, we can explain stagflation in the period of recession in the inside money economy. "Artificial borrowing" is by and large a feature of such an economy in the phase of slump. It is a consequence of the inside money supply growth in the expansion and it can be carried out only if money are created inside the economy. The actions of "artificial borrowers" generate the interest rates rise, and under imperfect competition such a rise is the reason for inflation in the recession, that is to say, for stagflation. Furthermore, as we mentioned above, "artificial" borrowers crowd out the "genuine" ones; it means the decrease in the degree of availibility of finances for the long-term investment. Aggregate demand falls, and if relationship between aggregate supply and the price level has a negative slope, stagflation takes place. In the outside (metallic or fiat) money economy such events are impossible, because the economic expansion is by and large not financed by private debts, and there are no incentives and conditions for the "artificial borrowing".

It is interesting that Keynes has assumed the exo- geneity of money in his magnum opus (1936). The endogenous inside money were in his focus in the Treatise on Money and some articles published after the General Theory in the 1937 and 1939